Rural Districts and Business Agglomerations in Low-Density Business Environments. The Case of Extremadura (Spain)

J. Francisco Rangel-Preciado, Francisco M. Parejo-Moruno, Esteban Cruz-Hidalgo and Francisco J. Castellano-Álvarez
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J. Francisco Rangel-Preciado: University Center of Plasencia, Department of Economics, University of Extremadura, 10600 Plasencia, Spain
Francisco M. Parejo-Moruno: Department of Economics, Faculty of Economic and Business Sciences, University of Extremadura, 06006 Badajoz, Spain
Esteban Cruz-Hidalgo: Department of Economics, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Cáceres, Spain
Francisco J. Castellano-Álvarez: Department of Economics, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Cáceres, Spain
Authors registered in the RePEc Author Service: José Francisco Rangel Preciado, Francisco Manuel Parejo Moruno and Esteban Cruz Hidalgo

Land, 2021, vol. 10, issue 3, 1-18

Abstract: The strategy of the institutionalization and development of business agglomerations, in any of its analytical aspects (industrial district, local production system, cluster, etc.), has not had great results in Spanish regions with low business-density, probably due to the difficulty of finding an adequate implementation framework in administrative, geographic, and institutional terms. Based on the limitations presented by the identification methodologies of business agglomerations in low business-density territories, in this work we propose some methodological corrections that allow for reconciling these economic realities with the institutional and geographical framework offered by the local action groups (LAGs). This reconciliation is a useful tool to take advantage of the economies of agglomeration and, consequently, to explore the possibilities of endogenous development in rural areas, so that it can be a factor to take into account when planning and executing the public strategy of local and rural development. Finally, the results obtained for the specific case of Extremadura, the only Spanish region listed as a less developed one in European rural development policies, are presented.

Keywords: local action group; rural development; industrial district; local productive system; rural district (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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